Spare Money and Self arranged DMP

peteuk

Due to difficulties (on both parties) when CCCS changed to Step Change, I took the decision to organise my own DMP. To be honest it was based on the my last CCCS review.

Now me and my wife have spare money (due to a PPI claim and a change in employment) I have managed to pay off a lot of debt, but still have a few debts on the DMP/agreement payments.

Having looked at the outgoings of both accounts we have nearly £2K to live on once all our direct debits and bills (except food which is approx £500 - £600 per month) are paid, obviously it doesn't take into account miscellaneous spending. The debts and what is left of the DPM is detailed below, but the advice I would like is how to calculate what payments should/could be made. PLEASE NOTE THE PAYMENTS BELOW ARE INCLUDED IN THE DIRECT DEBITS AND BILLS MENTIONED ABOVE.

Aqua Credit card Balance £200 Limit £250 payment £20 No arrears
BCW (2X Provident loans) Balance £2K payment £100
Natwest Credit card Balance £1K payment £75 (with Debt collectors)
Swift Sterling Balance £325 payment £25
Vanquis Credit card Balance £500 Limit £500 payment £23 No arrears
Westcot (LLoyds Loan) Balance £4.5K payment £10 (decreased due to difficulties and will be first to be readjusted)

We have 2X Car loans paying £195.68 - approx 30 months left and a payment of £123.93 paid in June 2016.

Any help in how to adjust payments would be gratefully received.

Growurown

peteuk wrote: »

Due to difficulties (on both parties) when CCCS changed to Step Change, I took the decision to organise my own DMP. To be honest it was based on the my last CCCS review.

Now me and my wife have spare money (due to a PPI claim and a change in employment) I have managed to pay off a lot of debt, but still have a few debts on the DMP/agreement payments.

Having looked at the outgoings of both accounts we have nearly £2K to live on once all our direct debits and bills (except food which is approx £500 - £600 per month) are paid, obviously it doesn't take into account miscellaneous spending. The debts and what is left of the DPM is detailed below, but the advice I would like is how to calculate what payments should/could be made. PLEASE NOTE THE PAYMENTS BELOW ARE INCLUDED IN THE DIRECT DEBITS AND BILLS MENTIONED ABOVE.

Aqua Credit card Balance £200 Limit £250 payment £20 No arrears
BCW (2X Provident loans) Balance £2K payment £100
Natwest Credit card Balance £1K payment £75 (with Debt collectors)
Swift Sterling Balance £325 payment £25
Vanquis Credit card Balance £500 Limit £500 payment £23 No arrears
Westcot (LLoyds Loan) Balance £4.5K payment £10 (decreased due to difficulties and will be first to be readjusted)

We have 2X Car loans paying £195.68 - approx 30 months left and a payment of £123.93 paid in June 2016.

Any help in how to adjust payments would be gratefully received.

Sorry peteuk, I don't really know, so am bumping this back to page 1 in case anyone else can help. You could try posting this on the DMP mutual support thread. There's some very knowledgeable people on there.

National_Debtline

Hi Pete

Creditors generally expect to be offered their pro rata share of the money you have available for all of your debt payments. That means they would be offered their fair proportional share based on how much you owe them.

If your car loans are actually a type of finance such as hire purchase you would be allowed to keep up the normal payments on those, otherwise it might lead to the car being repossessed.

If you fill in the budget template in the link below, and your debt balances at the end, it will work out the pro rata offers for each creditor. Make sure you remember to allocate money for food and any miscellaneous spending you think you need and it will then pro rata the money left for debt payments.

www.nationaldebtline.org/EW/steps/step2/Pages/Step_2_11.aspx


There is a template letter here for making pro rata payment offers:

www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/default.aspx


I hope that helps.

James
@natdebtline

theoretica

Are you asking how much to put towards your debts? How much did you have to live on before? One answer would be to keep that the same and pay everything extra to your debts.

Or are you asking how to divide your payments between your debts? As NDL says, if you are not meeting the minimum payments on everything and/or are getting interest cancelled then they expect a pro rata division. If you are being charged interest and meeting minimum payments then it is usually best to pay the highest interest off fastest.

dobbollah

if you have 2k left, minus 500-600 food plus misc expenses...then maybe you have £1200 a month left...?

for me....id maintain the monthly payments for those accounts you are current with.....and then seek to clear the ones you are behind with, picking off one by one.....

peteuk

All,

Sorry I missed your comments, so thank you for your help. I was planning on reposting this asking the same question in a different way.

I found a spread sheet in the Debt Advice Foundation web page, that although it doesn't all the expenditure that I needed, it did help for a starter.

I was looking at increasing them pro rota, but when I've looked at it over the weekend I have come to the same conclusion as suggested by dobbollah. Keep paying but clear them one by one. The main reason for this is I am risk aversive, I don't want to increase them and then find i've got the sums wrong. So this is the plan....

Aqua Credit card Balance £200 Limit £250 payment £20 No arrears -
BCW (2X Provident loans) Balance £2K payment £100 - Start Overpaying Feb-Aug 16
Natwest Credit card Balance £1K payment £75 (with Debt collectors) - over pay and clear in 4 months. Paid JAN 16
Swift Sterling Balance £325 payment £25
Vanquis Credit card Balance £500 Limit £500 payment £23 No arrears
Westcot (LLoyds Loan) Balance £4.5K payment £10 (decreased due to difficulties and will be first to be readjusted) - Overpay Sept until paid

Come June we will have one of the car loans paid so even more to add to the overpayment. I am looking at reviewing this once the Natwest CC is paid (early 2016).

redux

Pay off the non arrears credit cards first as presumably these are still incurring interest, and probably at higher rates than the loans. Then use them for current spending and pay in full each month. This keeps a few hundred quid out of interest charges.